On 18 March, Cibus announced the terms of the class D share bonus issue. The introduction of class D shares will increase Cibus’s financing flexibility and is a step to strengthen the balance sheet as the company is targeting an investment grade (IG) rating; D shares are considered 100% equity among rating agencies. Cibus will have more equity-like financing alternatives, helping it to virtually double its asset base. We consider D shares as a good alternative to finance M&A in addition to common equity and debt, given an IG rating-aligned LTV of ~50%. We raise our fair value range to SEK 260-320 (240-300), partly driven by increased peer valuation. Marketing material commissioned by Cibus.

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